AUTO CENTERS TO END `BACK-SHOP' SERVICES

Jim Mateja, Auto writerCHICAGO TRIBUNE

When Sears, Roebuck and Co.'s car-repair business last made headlines, it was because California and New Jersey authorities said Sears employees had sold unnecessary and overpriced repairs. But the company said Monday that it wasn't the bad publicity that is causing Sears to institute drastic cuts at its Tire and Auto Centers.

Instead, the retailer has chosen to concentrate on the highest-volume, lowest-skill slice of the market: selling tires, batteries, brakes and shock absorbers. Sears no longer will provide "back-shop" services-tuneups, diagnostics, electronics, radiator and air-conditioning services and some repairs.

"Our action has nothing to do with what happened in California," said Greg Rossiter, a Sears spokesman. "Those allegations focused on brake and suspension work, two areas of business we are going to continue in."

About 4,300 full-time and 6,400 part-time jobs will be eliminated in the auto business, and some of the company's 850 service centers will be closed. Most of the full-timers losing their jobs will be certified mechanics who won't be needed once the skills the company requires change from tuning engines to changing tires. Sears employs 30,000 technicians, trailing only General Motors Corp. and Ford Motor Co.

"Automotive repair has become more complex, and we wanted to simplify and focus on our core business in tires, batteries, shocks and brakes by discontinuing the tuneup and diagnostic and exhaust-system work," said Rossiter.

Sears, which recently took on distribution of Goodyear tires, is the nation's No. 1 aftermarket tire retailer. Its DieHard battery is No. 1 among aftermarket batteries. And though not No. 1, Sears shocks are among the sales leaders in that segment.

Those services account for $22.19 billion of the annual $40.36 billion in sales of auto replacement parts.

"When you focus on tires, batteries and shocks, you don't have to invest as much time and money in training people (as) you would to perform tuneups," Jouppi said. "Then, too, maintaining equipment such as the computers needed for a tuneup is very expensive. They'll (Sears) take a big bite in writing off the cost of that equipment."

"Where the real savings comes is from equipment," agreed Larry Hecker, president of the parts association.

The cost of an engine analyzer for tuneups is estimated at $30,000, and a computer analyzer for auto emissions can cost $20,000.

Hecker noted that the infrequency of tuneups these days doesn't justify the investment in equipment.

"Tuneup volume is low, especially as cars have become more sophisticated," he said. "The 12,000-mile tune of yesterday is more commonly performed at 30,000 miles today and then only requires changing a few spark plugs and maybe cleaning fuel injectors."

"Everyone is in a cost-cutting mode and a return to the basics and what they do best," Jouppi said. "Sears has chosen to hang onto the high-volume, fast-moving items and not try to compete with dealerships or independent mechanics or service and repair franchise outfits. They're putting their money where they expect to make money."